NYT: The average price of gasoline in the United States reached $3.41 per gallon today.

NYT: The average price of gasoline in the United States reached $3.41 per gallon today.

Gasoline prices in the United States rose to an average of $3.41 per gallon on Saturday, marking a 14% increase over the past week and the highest level since 2024, according to the AAA motor club. This surge follows escalating geopolitical tensions in the Persian Gulf, where U.S. and Israeli military actions against Iran have disrupted oil shipments and triggered global supply concerns. The conflict has reduced regional oil exports by approximately one-fifth, contributing to a 35% weekly increase in U.S. crude oil prices, which reached $90.90 per barrel by Friday.

The price of diesel has risen even more sharply, averaging $4.33 per gallon—the highest since November 2023. These increases are driven by constrained oil supplies and heightened risks to tanker operations in critical shipping lanes. Regional disparities in gas prices have also widened, with California drivers paying $5.08 per gallon, the highest in the nation, while Kansas recorded the lowest at $2.90 according to price data.

Analysts warn that prolonged disruptions could strain household budgets and ripple through industries reliant on transportation and energy costs. Wayne Winegarden, an economist at the Pacific Research Institute, noted that even short-term price spikes can have lasting economic effects by reducing consumer spending and increasing business operating costs. The situation underscores the vulnerability of global energy markets to geopolitical instability, with potential long-term implications for inflation and economic growth.